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Biotechnological Business Models

The industry’s focus is on living organisms. The highly enforced standards make it an distinct consideration for business executives. These features make the industry an ideal incubator for innovation. They have led to major breakthroughs in agricultural yields, biofuels, and life-saving pharmaceuticals.

Start-up biotech companies have many options for revenue generation strategies, with the majority choosing either a technology partnering or an asset creation and out-licensing approach. Technology-based partnerships can produce more revenue and reduce financial risk, while outlicensing and asset creation strategies can yield significantly greater returns. A increasing number of biotechs at the early stages of research employ a hybrid approach that combines these two approaches.

Those who choose a product-oriented strategy can reap commercial success when they are able to get their pipelines to the right stage and attract a large pharmaceutical partner or an investor with a large sum https://genotec-frankfurt.de/biotechnological-synthesis-of-remedies/ of money. This can be costly but balancing opportunistic approaches to leveraging external resources with research-based decisions regarding homegrown projects is vital.

Alternately, the “platform” model is an alternative route to earning revenue. It is a less expensive option than the product-oriented development however, it comes with significant risk. In this model biotechs create and own their own platform technology, before teaming with pharma companies to develop a collection of drug discovery projects aimed at specific diseases (i.e. disease x in biology y). Advinus Therapeutics, among others, have adopted this approach.

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